conducting research
in this video we're going to learn about previous close price 52-week or year-long range p e ratio
beta reading charts trends analysis and company news
let's research a company together you may have heard of one i'm thinking of
netflix to find a company's stock quote you'll need to research the company on a financial
news and information site like yahoo finance start typing in the company name and make sure
you select the correct ticker symbol this will bring you to the company's stock quote
key information to analyze in a stock quote is previous close 52-week range p/e ratio
beta charts and company news previous close is the stock's closing price from the previous trading
day remember stock market trading hours are monday to friday 9:30 am to 4 pm eastern standard time
as you can see netflix's current price is $466.90
per share but its previous close price was $483.38 per share did netflix's stock go up or down
you can see that yahoo finance does the math for you it has the stock prices change and percent
change since its previous close next to the current stock price now let's look at the 52-week
range there's about 52 weeks in one year so this is sometimes referred to as the year-long range
the 52-week range is the highest price and the lowest price of the stock over a 52-week period
where does the current stock price fall in this range towards the bottom top or right in the
middle do you think the stock price is peaking the highest it will be or do you think it will grow
you can also get a visual representation of the stock's performance by looking at a chart
you can change the date range from one day to five days all the way to one year and five years
now when thinking about these questions is the stock peaking
or will it grow you'll want to scroll down to see if the company has been the news lately
does netflix have any new movies shows or new features coming out soon do you think the season
of the year or holidays affect its price are there any new or existing streaming services that
have cut into netflix's earnings also known as profit these are all important factors to analyze
a company's p/e ratio or price to earnings ratio is a measure of its stock price relative to its
earnings or profit p/e ratio equals stock price divided by earnings a company's earnings report
tells you how the company is performing a p/e ratio tells you how investors think the company
is performing in other words how much they are willing to pay for a dollars worth of its earnings
it's important to compare p/e ratios from companies in the same industry for example
tech or health care also note that low or high p/e ratios can mean a range of things
a low p/e can indicate that investors are selling their shares driving the
stock price down a low p/e can also indicate if a company is undervalued meaning their
earnings are growing quickly before investors notice buy shares and drive the stock price up
a high p/e can indicate that investors are buying shares but the company hasn't produced
higher earnings yet investors may think that the company will grow in the future
a high p/e can also indicate if a company is overvalued
beta measures volatility rapid or unexpected change as compared to the overall stock market
the overall market has a beta of one so if a stock has a beta of less than one
it's considered less volatile than the overall market
the company has a beta greater than one it's considered more volatile than the overall market
as of today netflix has a beta of 0.94
which is very close to 1 the volatility of the overall market
questions to consider what do you think is the most important part of analyzing a stock quote
previous close 52-week range p/e ratio or beta explain why
brainstorm five companies you're interested in investing in
thank you for watching